not vested
My EG Services (MYEG MK)
Pending Watershed EventsWe cut FY19 net profit forecast by 9.4% on lower matching assumptions as the government is still freezing foreign worker intake as well as due to nascent job replacement service which began on 1 Jul 19.
Nevertheless, maintain BUY on longer term prospects with a higher target price of RM1.66, pegging it at 18x FY20 PE (from 20x FY19F PE) owing to the long-awaited finalisation of foreign worker management process.
Note that earnings upside could be huge once the government finalises the foreign worker management process.
Maintain BUY with a higher target price of RM1.66 (previously RM1.62), as we roll forward valuation from FY19 to FY20, pegging it at 18x FY20F PE (from 20x 2019F PE) on the back of the long-awaited finalisation of the foreign worker management process.
Nevertheless, we remain confident that MYEG could be at the cusp of a re-energised growth
period as its e-government services are soon set to gain significant momentum.
Source: UOBKH
https://research.uobkayhian.com/content ... fa61f90f6a
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